Government is set to ban the importation of used vehicles that are older than 10 years old.
The executives and entire membership of Japan branch of the New Patriotic Party (NPP) are protesting against attempts by the government to ban the total importation of salvage cars and Vehicles older than 10 years.
The party executives led by the Chairman, Dr. Benard Oppong-Kusi, have also expressed their disapproval over a proposed increase in import duties on specific vehicles.
The Customs Amendment Bill, 2020 which contains these proposals has gone through second reading in Parliament on March 3, 2020, awaiting final Passage.
According to a joint report of the Joint Committee on Finance, and Trade, Industry and Tourism, government has predicted an estimated revenue loss of GH?802 million in the next three years as a result of the decision but hopeful the long term effect will be beneficial to the country as it would provide incentives for automotive manufacturers and assemblers.
However, in a Petition written by the Japan branch of the NPP addressed to the Chief of Staff, Akosua Frema Osei-Opare, described the decision as unpopular and tends to affect the fortunes of the party in the 2020 polls.
“We write to appeal against the passing of the Customs Amendment Bill, 2020 which entails the proposal to ban salvaged cars over 10 years old. This moved as explained by the Minister of Information is geared towards making the acquisition of vehicles affordable and ensuring the safety of roads across the country. The executives believe that the timing is wrong as we face the election 2020; this could also create unemployment as the auto dealership might collapse.
"The decision is gradually becoming unpopular and it has brought discomfort among the Ghanaian community in Japan and Asia in general. The fears of losing members and floating voters in this election year are evident as this may affect the electoral fortunes of the party and erode the gains the NPP has garnered over the last three years.”
The executives however clarified that they are “not against the amendment of the Customs Acts 2015 as it seeks to provide incentives for the automotive manufacturing industry to become more vibrant through the generation of high-quality skilled jobs and to encourage import substitution industrialization which could leap-frogged the nation into a manufacturing hub in the sub-region. Rather, we express our displeasure against the prohibition of salvaged cars and the increase in the import duty on specific vehicles as this is not in the interest of the many Ghanaian who cannot afford a brand-new vehicle”.
According to the NPP Party Executives in Japan, “alternatively, the bill should allow the market demand-supply mechanism to work so that consumers would have the liberty to choose from the available options.
This will keep prices low and will bring about quality. The executives are of the view that when new vehicles become affordable with the signing of the memorandum of understanding between the government of Ghana and the auto giants (Toyota, Nissan, Sino trucks Suzuki, Renault, Kia, Hyundai and Volkswagen), consumers would have no option than to buy the new vehicles rather than going for a used car.”
They are therefore appealing to the Chief of Staff and the appropriate authorities and agencies to take a second look at the amendment.
